topic Re: Why did my refund decrease after I entered stimulus check info? in Retirement tax questions

Why did my refund decrease after I entered stimulus check info?

kimplummer — Mon, 01 Feb 2021 00:53:30 GMT

Re: Why did my refund decrease after I entered stimulus check info?

JohnW152 — Mon, 01 Feb 2021 01:42:26 GMT

When you begin entering your information into TurboTax, the program assumes that you haven't received stimulus payment, so it begins by with the assumption that you're eligible for the maximum amount, based on the initial information you've entered.

When you enter the amount of stimulus you've actually received, it adjusts your refund to account for that.

The IRS requires you to report all relevant stimulus information when you’re filing your return.

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Thu, 25 Feb 2021 16:03:35 GMT

I'm using TT Deluxe 2020 from Costco (CD). Checked for all updates. TT still doesn't give me anywhere to enter the amount of stimulus I received (full amount ). It's doubly important as I live in a state w/ state income tax. Wouldn't want to short them on their slice. Also discovered a seemingly endless loop in CSA-1099-R input. I've never experienced this many flaws. ?????

Re: Why did my refund decrease after I entered stimulus check info?

JamesG1 — Thu, 25 Feb 2021 16:44:49 GMT

TurboTax still does not give me anywhere to enter the amount of stimulus I received.

If you have not received one or both of your stimulus checks, you will receive your payment in the form of a Recovery Rebate Credit on line 30 of your 2020 Federal tax return when you file.

TurboTax will compare your one or two stimulus payment amounts to the computations within TurboTax. The computations within TurboTax are based upon the information that you have entered into the tax software. If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return.

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

You can access your stimulus check choices by following these steps:

Down the left side of the screen, click on Federal.
Across the top of the screen, click on Other Tax Situations.
At the screen Let’s keep going to wrap up. Click on Let’s keep going.
At the screen Let’s make sure you got the right stimulus amount, click Continue.
At the screen Did you get a stimulus payment? you can update your stimulus check entries.

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Thu, 25 Feb 2021 19:09:21 GMT

This is closer to an answer. Stimulus..... I've received both. Nowhere to input that fact. Perhaps my income is to high to have received them but the system isn't designed to accommodate this.??

About CSA-1099-R....I've tried to "re-enter" it several times. Won't accept the change. Still and endless loop. The question is about the the years of service exclusions,and won't allow "none of the above" to be saved when entered.???? BTW on mother-in-laws return the same question worked properly???????

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Thu, 25 Feb 2021 19:25:09 GMT

These instructions for ONLINE version don't help much on the CD version. You'd think they would be the same. (and I did check and update)

Re: Why did my refund decrease after I entered stimulus check info?

JamesG1 — Thu, 25 Feb 2021 19:37:22 GMT

In TurboTax Online, are you able to access your stimulus payment amounts by following these steps?

Down the left side of the screen, click on Federal.
Across the top of the screen, click on Other Tax Situations.
Scroll to the bottom of the screen. Click on Let’s keep going.
At the screen It looks like you qualified for the stimulus, did you get any payments?, click Yes.
At the screen Let's double-check the amount you received you can update your stimulus check entries.

For the CSA-1099-R, at the screen Any periodic payments?, did you click Yes?

At the screen Payment Start Year, did you select Yes, I started getting payments in 2020?

At the screen Let's Figure Out How Much is Taxable, did you select I need to figure out how much of this is taxable?

Do you have the annuity information available to you?

Has the recipient reached the retirement age for the plan?

Re: Why did my refund decrease after I entered stimulus check info?

JamesG1 — Thu, 25 Feb 2021 21:04:40 GMT

@Whizkid151

In TurboTax Desktop Home & Business, are you able to access your stimulus payment amounts by following these steps?

Across the top of the screen, click on Personal.
Across the top of the screen, click on Deductions & credits.
At the screen How do you want to enter your deductions and credits? click on I'll choose what I work on.
Under Your 2020 Deductions & Credits, scroll down to the bottom and click on Done with Deductions.
Click on Continue.
At the screen Here are your 2020 Deductions & Credits, click on Continue.
Click until you reach Other Tax Situations. Scroll to the bottom and click on Done with Other.
At the screen It looks like you qualified for the stimulus. Click Yes.
At the screen Let's double-check the amount you received you can update your stimulus check entries.

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Thu, 25 Feb 2021 22:14:08 GMT

You lost mine at "looks like you've qualified...........". NO option to enter any check amounts.

Re: Why did my refund decrease after I entered stimulus check info?

JamesG1 — Thu, 25 Feb 2021 22:36:23 GMT

After you clicked Done with Other,

Did you arrive at the screen It looks like you qualified for the stimulus, did you get any payments?

If not, what does the screen say?

@Whizkid151

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Fri, 26 Feb 2021 19:55:53 GMT

After "other....", I click done and it goes to "We're ready to Review your Fed........" Have you entered all your tax forms or papers? Yes or No?

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Fri, 26 Feb 2021 22:28:35 GMT

@JamesG1 Hadn't noticed this trick yet. Appreciate your help thus far. Still struggling. Wonder if going to beginning and removing the largest income stream would get to the stimulus tools. Get them entered then replace the missing part. Or would that just blow the whole thing up?

Re: Why did my refund decrease after I entered stimulus check info?

MaryM428 — Sun, 28 Feb 2021 03:05:32 GMT

At the top of your tax return select Federal Review

That will take you to this screen where it asks if you have already received your stimulus payments. If you received the first or second payment already, then select Yes and fill in the information. If you did not receive any payment select No. If you received the first payment only, fill in that amount and put zero (0) for the second payment.

When the screen is correct, you refund will be adjusted for the amount of stimulus payment that will be added to your 2020 refund.

In some cases, TurboTax starts with assuming you did not receive any stimulus payments and starts your refund with the full amount of both payments. Then when you enter payments, the amount of refund decreases or amount owed increases. The payments are an advance on the 2020 tax return.

@Whizkid151

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Mon, 01 Mar 2021 00:23:15 GMT

@MaryM428 Swing and a miss. This has recommended before. At "Fed Rev....." It starts with Have you put in all your tax forms? No mention of stimulus.

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Tue, 02 Mar 2021 01:29:09 GMT

@MaryM428 If my income disqualifies me ( I had a far better year than last year, the basis for my receiving the stimulus money ) and I have already received both stimulus deposits. I just want to input this data, as I assume it means I will have to pay it all back. BTW nothing in line 30, as some have suggested. Does anyone know how to do this????? I can only think to start a new return, fill in the checks first, then do my income. Will that freak TT out??

Re: Why did my refund decrease after I entered stimulus check info?

DawnC — Tue, 02 Mar 2021 02:29:43 GMT

You do not have to pay it back; you get to keep it. Since you qualified based on your lower 2019 income, it doesn't matter if you did well in 2020 and don't qualify now. Congrats, you are a rare case in 2020, but the IRS has stated that payments do not have to be repaid. You are not going to get the stimulus questions in TurboTax if you do not qualify based on your 2020 income. Keep in mind, you are dealing with the IRS and that is what they have said. I make no promises as to what they may say later, but I highly doubt they will backtrack on that. @Whizkid151

If you want to return it, you can, but you are not required to. What should I do to return an Economic Impact Payment (EIP) that was received as a direct deposit or a paper check? (added February 10, 2021)

Re: Why did my refund decrease after I entered stimulus check info?

Whizkid151 — Tue, 02 Mar 2021 16:10:19 GMT

@DawnC Thank you so much for the response. I've been grinding on this for about 10 days now. I wondered early on, if that might be the case. Then I got lost in a fog of so many different responses. Should have stuck with my original perspective, " If it was a thing, TT probably would have it covered ( or not if not needed )".

Re: Why did my refund decrease after I entered stimulus check info?

Lori601 — Tue, 06 Apr 2021 21:53:40 GMT

If it isnt taxable, we shouldnt have to add it on taxes. their getting all their money back, so we werent given a thing. haha. doesnt take a brain to figure that out.

Re: Why did my refund decrease after I entered stimulus check info?

JotikaT2 — Tue, 06 Apr 2021 22:10:15 GMT

It isn't taxable actually.

The stimulus checks have no bearing on the income reported on your tax return. However, it is used to calculate the Recovery Rebate Credit which is why it is needed when you prepare your income tax return.

The Recovery Rebate credit is calculated on your 2020 income tax return and is dependent upon what was entered into the program. If you were eligible for both stimulus payments but did not receive them or received less than you were entitled to, you would have received the credit if you met all of the other requirements.

The amount of this credit is used to offset any existing tax due. If there is excess credit remaining after being applied to your tax due, you will be refunded for the excess amount.

Please see the attached link for more information on who can claim the credit.

Recovery Rebate Credit eligibility

@Lori601

Re: Why did my refund decrease after I entered stimulus check info?

Elowe1941 — Sun, 09 Jan 2022 06:42:25 GMT

@Lori601 I know right! I really don't get this... If it is non-taxable or (we get to keep it) why did my refund drop exactly $1400? I typed in my annual earned income, my dependents etc. etc) and ended up with my estimated refund amount. Then entered my $1400 stimulus amount where prompted and !!POOF!! REFUND DROPS/LOSES $1400? 🤔 guess ima need those layman's terms.